Nissan Motor announced a series of cost-cutting measures on Thursday, including the elimination of 9,000 jobs and a 20% reduction in global production capacity, to address falling sales in major markets like China, North America, and Japan.
These measures create uncertainty for Nissan’s 130,000 employees as the company also reduced its annual earnings forecast for the second time this year. A 90% drop in operating profit during the first half of the fiscal year has highlighted the urgent need for restructuring.
In line with further cost-saving efforts, Nissan CEO Makoto Uchida will cut his monthly salary by 50% starting in November 2024, with other executives also voluntarily reducing their pay.
These actions are part of Nissan’s wider plan to lower fixed costs by 300 billion yen and variable costs by 100 billion yen to ensure long-term profitability.
With global carmakers facing reduced demand in key regions and increasing competition from Chinese electric vehicle manufacturers, Nissan’s measures reflect the industry-wide challenge of remaining competitive in a rapidly changing market.
